Your Home Is the Most Likely Asset to Pass Through Probate
For most Missouri families the single biggest asset that might pass through probate is the family home. Often when the home is initially purchased it is titled in the husband and wife’s names joint with right of survivorship. When the first of them passes, the surviving spouse owns the home. When the second of them passes their Will would spell out who is to get the home. The question becomes how does the home get titled into the names of the intended recipients. Traditionally when a home is transferred to someone it is done through a deed. In this instance, the individuals who would need to sign off on the deed are both deceased. Hence the need to go to probate and seek judicial assistance to transfer the home to the intended recipient. Using a Beneficiary Deed in Missouri can help eliminate the need for probate of the home.
The Missouri Beneficiary Deed May be the Probate Avoidance Answer
While probate will transfer the home, most families do not want to take the time and spend the additional money to go through the probate process. One solution for homeowners is the Missouri Beneficiary Deed. Authority for such a deed can be found in Mo. Rev. Stat. § 461.025. See https://revisor.mo.gov/main/OneSection.aspx?section=461.025&bid=25832. A Beneficiary Deed is a special kind of deed that can be filed with the local County Recorder of Deeds. The Beneficiary Deed transfers an owner’s interest in real estate to named beneficiaries upon the owner’s death without need for the probate process. This saves the family both the time and money associated with the Probate Process.
What Effect Does the Beneficiary Deed Have on Your Property
The Beneficiary Deed does not alter the owner’s interest in the property while they are living. The owner can decide to sell the property and upon such sale the Beneficiary Deed terminates. At any point during the owner’s lifetime they could amend the Beneficiary Deed or even revoke it should they determine that is no longer their wish. A Beneficiary Deed can even be filed when the property has a mortgage associated with it. There is no requirement that the lender be notified that a Beneficiary Deed is being filed upon the encumbered property. However, it important to understand that the Beneficiary Deed does not defeat the mortgage should the owner pass before the property is completed paid off. Nor does a Beneficiary Deed prevent Missouri Medicaid from recovering in the event they have paid for any of the owner’s long-term care expenses.
If you or your family are struggling with any Estate Planning or Probate concerns, make an appointment with the experienced St. Charles Estate Planning Attorneys at Jones Elder Law. That way, you can decide what happens to the assets you worked so hard to acquire. If we can help you get started, contact our St. Charles Elder Estate Planning Law Firm at (636) 812-2575and ask to schedule a call or virtual consultation, what we call a Vision Meeting http://joneselderlaw.com/vision-meeting/. For your safety and ours we have developed the Minimal Contact Planning process to be used while the Covid-19 virus remains a concern.
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